5 Ways ERP Software Can Deliver ROI (Return on Investment) – Infographic

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Rick Siddiqi

Senior editor

Parul Saxena

Chief editor

Last updated: September 30, 2021

If there is one system that most companies implement nowadays, it is the ERP. Enterprise Resource Planning is a system that automates core business functions such as inventory and order management, accounting, human resources, customer relationship management, manufacturing, and others. These various functions are integrated into one system which improves the company’s efficiency and productivity significantly.

Looking for Enterprise Resource Planning Software? Check out SoftwareSuggest’s list of Best ERP Software solutions.

Investing in effective enterprise resource planning has been a priority of many businesses ever since. In fact, the 2016 ERP Report from Panorama Consulting Solutions revealed that over 81% of organizations are either in the process of implementing ERP software or have already completed implementing an ERP software into their company’s system. With this huge number of companies relying on ERP, there is no doubt that it is indeed a system worth investing in.

How ERP Implementation is Helping Businesses to Grow their Business?

1. Cost-Efficiency

By integrating the core functions of a business into a one, enterprise-wide system, a business is able to streamline its once disorganized processes, saving them a lot of money along the way. Eliminates the need for an independent system for each department so the amount of time and cost associated with training additional users for different systems is also avoided.

2. Efficient Data Sharing

It allows its users to upload, edit, and share critical data with other key personnel in the company. This seamless data sharing capability improves the quality not only of the deliverable but the communication between employees as well. A more pronounced work collaboration in business makes every output more precise and on-point.

3. Improved Productivity

Using an outdated resource planning module to run your business is not only expensive but also degrades the productivity level of your employees. With ERP Software, your workforce will not only experience a more efficient system, their attitude towards the task – even if it’s distressing and repetitive –  will also change, increasing their productivity level in the process.

The thought of working through software might imply that you would have to navigate through complex processes. On the contrary, ERP system implementation in your business will play a massive role in reducing time by eliminating manual entry and replications of invoices, increasing overall productivity. ERP for small business owners who get stuck in Excel will come in very handy and help them automate their processes. You can even get to automate operations inter-departmentally to provide real-time data to all the employees using the software.

4. Agile Decision Making

Many of the most successful business today knows that enterprise resource planning software is a vital tool not only to improve operational efficiency but also as a key resource when making critical business decisions. Having said, many of the modern ERP software today allows C-suites to access even the most vital information in real-time through cloud technology. Cloud-enabled ERP systems are not only a more cost-effective option, but it also allows small businesses to track their key metrics and analytics real-time.

With those benefits, it’s almost impossible to think that a company would still be hesitant to invest in this type of system. However, it is also important to take note of the impact of it on your own company’s most treasured stronghold-  our employees. In this infographic, let us learn the different factors that affect our employee’s performance, and why investing in ERP software can help address these issues effectively.

5. Greater Supply Chain Visibility

ERP software can help immensely with supply chain management to large and small companies that have to deal with shipping. A proper quality ERP system implementation will interpret supply chain numbers efficiently optimize expenditures in purchase and inventory departments. This, in result, will give businesses better insight into their supply chain operations from which owners can then make informed decisions to stay ahead of their competitors. Issues arising in the supply chain can be quickly notified and averted with the help of the system.

6. More Savings & Centralization Of Software

ERP solutions may make you think twice since you have to invest upfront for ERP system implementation in your business, but in the long run, it is giving you a high ROI. And here’s how – first of all, an ERP software fuses all your departmental processes and systems together that were scattered before in your company. This will ultimately result in easy access to data for your staff from one unified and centralized system. Not only this, a combined system provides quality security as well, which means less expenditure will be made in the training the workforce to manage their personal departmental systems, which will also reduce logistic efforts if any involved.

7. Happier Customers

Customer satisfaction is an essential fuel to keep any business running. And the best way to do that is by providing exemplary services centered towards them. ERP implementation in your business can help you ensure customer satisfaction in several ways. Most of these ERP systems nowadays come equipped with a CRM tool that provides you with all the necessary details needed about your customer such as order history, billing information, shipping address, etc., to give you a better understanding of how to provide your clients’ requirements.

8. Communication And Business Intelligence

Analyzing and interpreting business data is not as easy as cutting a piece of cake. But with a sound ERP system, you can organize your company’s information within one system and make informed business decisions by utilizing a variety of analytical tools from it. Not only will it help you remain competitive in the industry sector, but it will also improvise the communication in departments as teams won’t be differentiated based on separate systems.

9. Supplier And Partnership

Partnerships and the supply chain tend to become more complex as your company and business interests start to expand. You can improve handling your business operations with ERP implementation in your company which will enhance ease of access to documents such as contracts, approval data, policies, orders to pricing, etc. Also, supplier information stored in the system will help you with inventory management and production planning.

10. Human Resources

All aspects of HR departments can be streamlined with the help of enterprise resource planning software to improve business operations. An ERP implementation within your primary business will help automate and speed-up all administrative and data storage challenges your HR departments might be facing to make the process smooth.

11. Regulatory Compliance

Since the enterprise resource management software gets fully integrated with all your business departments, it provides the most valuable asset to the company in times of need – traceability. From quality control to audit trails, ERP software will always ensure that your organization has everything operating efficiently within your chosen legal framework.

12. Transactions

The target needs for the point of sale may be different for your company depending upon your sector. Regardless of it, a proper ERP implementation will help you provide a complete centralization of all your orders and customer transactions as the information can be linked from your website directly to your system. This allows you to generate real-time sales reports and manage inventory stock levels efficiently accordingly.

13. Better Analytics & Accounting

Keeping track of financials during the growth phase is a tough task to manage without a centralized system. With ERP solutions, you can automate data entry tasks, keep track of your transactions, thus avoiding any repetitive work from your employees, preventing human error. Since ERP is a consolidated system of all departments generating reports becomes easier for analytics and business intelligence. A customizable board, through which all the executives of the organization, can study and interpret data and reports, will help gain better insights on your business deals to make better decisions.

14. Real-time Data

Growing businesses require a proactive workforce who are ready to work on the go. Such employees need to access real-time data from anywhere since they don’t run operations solely from their desks, as they have to attend meetings and go to conferences around the world. Through an ERP database, you can store all the database information of the organization and access it with a login account anywhere.

15. Stats & Figures

Not getting the right statistics and figures to interpret the values and inputs employees give to the organization can make them lose their interest in working efficiently at all. Large and small companies tend to lose a lot of money financially due to these kinds of miscommunications and employees tend to lose their productivity each day because of it. ERP implementation helps you get the best stats about your work and resource input automatically. Its application reduces operational costs and administrative costs significantly while executives can get to interpret their efforts put in their organization to grow the businesses better.

Final Word

These benefits are not the only benefits of implementing an ERP system in your organization, but the ones mentioned above are the major ones in our opinion. Most businesses, especially small companies, start out using a variety of standalone and straightforward tools to manage their different business process like Excel Spreadsheets or QuickBooks. But needless to say, there’s no alternative other than ERP software to help you in this ever-growing economy in this modern scenario. Nowadays, ERP solutions come with upgraded seamless technologies to help you go through all your business processes like the back of your hand. So, we hope this blog enables you to choose understand why an ERP is vital to help your business grow better.

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Rick Siddiqi is a 20 year business and technology veteran. He is Managing Principal of companies that specialize in business management software.

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2 COMMENTS

  1. It’s actually a great and helpful piece of information.
    I’m satisfied that you shared this helpful info with us.
    Please stay us informed like this. Thanks for sharing.

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